Standard Chartered begins offering custody for Ripple's RLUSD stablecoin through its Dubai branch, with $1.14B in circulation.
DeFi & Yields ·
Standard Chartered has launched institutional custody for Ripple USD ($RLUSD) issued on the XRP Ledger through its Dubai International Financial Centre branch, which operates under Dubai Financial Services Authority regulation. Approximately $1.14 billion in $RLUSD currently circulates on the ledger. The bank is simultaneously developing a collateral integration with Ripple and LMAX Group to make $RLUSD eligible as collateral for LMAX products, though that arrangement remains pending final documentation, testing, regulatory approval, and jurisdictional readiness across all parties.
The custody service is live for eligible institutional clients, but the collateral integration operates on a separate timeline. Under the proposed framework, Standard Chartered would hold the underlying $RLUSD while LMAX receives a mirrored value representation for collateral purposes rather than the tokens themselves. This structure is designed to reduce transfer-related operational risks and provide clients with greater flexibility in holding and deploying digital assets for trading without requiring direct token transfers to the venue.
The collateral arrangement depends on completion of multiple conditions, including successful testing, execution of final agreements, and internal approvals from both Standard Chartered and LMAX. The specific LMAX products that will accept $RLUSD collateral have not been identified in the announcement. Institutions considering the service must separately evaluate whether the current custody offering meets their needs and whether the later-stage collateral terms will align with their trading requirements once published.